The Bear Company collected the following monthly information on units produced and electricity costs: Month Units produced Electricity costs January $$50,000 $78,000 February $48,000 $74,500 March $47,000 $72,000 April $54,000 $81,000 May $58,000 $86,000 $79,500 June $53,000 Using the high-low method, prepare an estimate of electricity costs for July, assuming 53,500 units are expected to be produced in July.

The Bear Company collected the following monthly information on units produced and electricity costs: Month Units produced Electricity costs January $$50,000 $78,000 February $48,000 $74,500 March $47,000 $72,000 April $54,000 $81,000 May $58,000 $86,000 $79,500 June $53,000 Using the high-low method, prepare an estimate of electricity costs for July, assuming 53,500 units are expected to be produced in July.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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